The French company Total Energies recorded a sharp rise in its profits during the third quarter of 2026, exceeding analysts’ expectations, supported by the record performance of the refining and chemicals sector, in light of the rise in oil prices and the tightening of supplies of petroleum products globally against the backdrop of the US-Israeli war with Iran.
The company announced on Thursday that its adjusted net income reached $9.1 billion during the period from July to September, an increase of 127 percent compared to about $4 billion in the same period last year. The results were higher than the average expectations of 12 analysts surveyed by the London Stock Exchange Group, amounting to $8.3 billion.
The refining and chemicals sector achieved record results, as its net income doubled to $3.6 billion, benefiting from the scarcity of global supplies of petroleum products following the outbreak of the war with Iran, and the resulting rise in refining margins to historic levels.
The company's CEO, Patrick Pouyannet, said that increasing refining volumes by about 10 percent enabled Total Energies to take full advantage of the historically high refining margins in Europe and global markets, adding that oil trading activities recorded a strong performance similar to the levels it achieved during the previous two quarters.
The improvement extended to the liquefied natural gas sector, whose income rose to $1.9 billion, supported by an increase in average gas prices of about 20 percent, in addition to the strong performance of LNG and gas trading activities in an emerging market.
Regarding shareholder returns, the company confirmed its plans to repurchase shares worth $2.5 billion during the fourth quarter of 2026, and announced its intention to purchase additional shares of the same value during the first quarter of 2027, at the upper limit of the indicative range that it specified last month.
The results reflect energy companies benefiting from higher refining margins and tight supplies, at a time when geopolitical tensions continue to impact oil, gas and refined products markets.
The Indian rupee fell to its lowest level in two weeks, Thursday, under pressure from continued demand for the dollar and cash outflows likely linked to the repayment of outstanding debts abroad, while Indian government bonds rose supported by a decline in US Treasury bond yields and a decline in oil prices.
The rupee recorded 95.3675 against the dollar, down 0.15 percent from the previous session's close at 95.22, while the yield on the benchmark Indian bond due in 2036, with an interest rate of 6.94 percent, fell by 3 basis points to 7.4091 percent by midday. Bond yields move inversely with their prices.
Traders said limited interventions from the Reserve Bank of India helped limit rupee losses, at a time when the currency's weakness limited bond gains, along with investor caution ahead of New Delhi's issuance of bonds worth 330 billion rupees ($3.47 billion) on Friday.
The rupee had risen earlier this month to its highest level in more than a month, at 94.32 against the dollar, supported by a series of regulatory measures and large inflows linked to a huge initial public offering in the local market, but its gains have begun to fade since then.
A trader at a foreign bank said that demand for the dollar is still strong, and it does not appear that it will decline soon, pointing to an increase in purchases of the US currency from clients in multiple sectors, including electronics manufacturing and jewelry trade.
In the non-deliverable futures market, a Singapore-based hedge fund trader indicated weak interest in selling the dollar against the rupee, adding that central bank interventions are the main factor pushing the exchange rate down.
The continued pressure on the rupee has increased its dependence on interventions by the Reserve Bank of India to prevent sharp movements in the exchange rate, and has also made it less responsive to global factors.
Declining oil and US bond yields support Indian bonds
Support for Indian bonds came from a decline in the ten-year US Treasury bond yield by 5 basis points to 4.99 percent during Asian trading. Brent crude futures also fell by 1 percent to $114 per barrel.
The US Federal Reserve kept interest rates unchanged on Wednesday, as was widely expected, but indicated that inflation would continue to rise.
Emkay Global Financial Services said in a note that Federal Reserve Chairman Kevin Warsh explained that raising interest rates in September had begun to tighten financial and credit conditions.
The euro stabilized on Thursday, ahead of the European Central Bank's monetary policy decision, amid anticipation of developments in the bond crisis in France, while the dollar moved within a limited range.
The European Central Bank is expected to keep interest rates unchanged, while concerns about France's ability to handle its huge debt burden are putting pressure on French government bonds.
Weekly data showed that negative bets on the euro reached high levels, with the net selling positions of speculators reaching the highest level in 10 years, at a value of $18.89 billion.
Markets reduce monetary tightening bets
The US Federal Reserve decided to keep interest rates unchanged in a vote of 10 to 2.
The dollar stabilized on Thursday, after falling from its highest level in two weeks during New York trading.
The yen awaits the Bank of Japan's decision
Attention is also turning to the Bank of Japan, which concludes a two-day meeting on Friday, amid expectations that interest rates will remain unchanged.
